Promotional products have a long history of boosting client acquisition and retention. That said, recent statistics shed even more light on the many benefits related to these valuable marketing tools. If you want to please the person that signs your paychecks, learn why you should incorporate branded promotional items into your company’s marketing plan.
Key Points about Offline Marketing
These days, more and more businesses are investing in online marketing campaigns which have the ability to reach countless customers across the country. Unfortunately, some are ignoring offline marketing strategies that can have a huge impact on their bottom lines. Before you finalize your marketing strategy, learn five key points about branded merchandise.
- They promote brand awareness. A recent study showed just how effective promotional products are at enhancing brand awareness, when it asked numerous consumers if they remembered the brand name on specific promotional items they’d received in the last 12 months. Overall, 88 percent gave a resounding “yes.”
- They’re valued. This same study revealed the popularity of branded items, when it showed that 83 percent of consumers said they enjoyed receiving promotional items.
- They generate new business. Another study by the Advertising Specialty Institute (ASI) found that branded items are especially effective at cultivating new business relationships. After surveying 465 businesspeople in Philadelphia, Los Angeles, Chicago and New York, the researchers found that 62 percent went on to do business with the advertiser on a promotional product they received.
- They help with retention. Branded products are also a great way to thank clients for their continued business. In fact, ASI’s study determined that 42 percent of respondents had a more favorable opinion of a company after it gave them a promotional item.
- They have staying power. ASI’s study also showed why branded items make reliable long-term investments, when it showed that more than 75 percent of respondents kept their promotional merchandise for at least 6 months.
Which Customers Should You Invest in?
Clearly, promotional items make a lot of sense; however, to put them to good use, companies need to determine a particular customer’s worth before investing in a plan. Although it sounds complicated, the process is actually quite simple.
To assess the financial impact or “worth” of an individual client, professional marketers assign lifetime values (LTVs) to each one. To determine a customer’s LTV, you can simply multiply the average order size times the average number of orders you’d receive from an existing or prospective client.
For example: consider a client who orders $1,400 worth of product or service 3.5 times per year ($1,400 x 3.5). Using the standard formula, you’d arrive at an estimated LTV of $4,900. If you set aside $100 per year to retain or acquire this one customer, you’d only be investing about 2 percent of your profits (less expenses or commission splits).
By evaluating the true worth of your clients, you can determine exactly which ones should receive the bulk of your branded merchandise. You can also see why it pays to invest in your most valuable customers by targeting them with promotional items that will attract and maintain their attention and enduring appreciation.